Financial Crime World

Cybercrime Takes Center Stage in Panama’s Financial Institutions

In today’s rapidly evolving digital landscape, cybersecurity has become an essential concern for nations to ensure economic prosperity. Panama, known for its financial hub and strategic location, is taking steps to mitigate the growing threat of cybercrime.

Strengthening Regulation on Cybersecurity and Cybercrime

Despite progress in recent years, Panama still needs to strengthen its regulation on cybersecurity and cybercrime. However, several initiatives have been implemented in the past decade:

  • Establishment of the Computer Security Incident Response Team: In 2011, Executive Decree 709/2011 established the Computer Security Incident Response Team (CSIRT) responsible for addressing cyber incidents affecting critical infrastructure.
  • Release of the National Strategy for Cybernetic Security and Critical Infrastructure Protection: In 2013, the National Council for Government Innovation released a national strategy to protect critical infrastructure from cyber threats.
  • Participation in the ‘Stop. Think. Connect.’ Campaign: Panama joined the international campaign ‘Stop. Think. Connect.’ to promote community awareness of cyber risks and online good practices.

A New Era for Data Protection

The entry into force of Law No. 81 on Personal Data Protection in 2021 marked a significant milestone in Panama’s data protection landscape. The law prohibits trading with databases containing private information, previously a widespread practice among financial institutions.

Cyber Threats Multiply

As the COVID-19 pandemic accelerated online activities, users have become increasingly connected to the internet. Cybercriminals have taken advantage of this situation, exploiting vulnerabilities and engaging in various malicious activities:

  • Identity theft: Stealing personal information such as names, addresses, and social security numbers.
  • Phishing: Tricking victims into revealing sensitive information through fake emails or websites.
  • Pharming: Redirecting users to fake websites that appear legitimate but are actually used for malicious purposes.
  • Malware: Using software to gain unauthorized access to computers or steal sensitive information.
  • Forgeries and computer frauds: Creating false documents or engaging in other forms of cybercrime.

Panama’s Cybersecurity Challenge

With its financial center and strategic location, Panama is well-positioned to attract multinational headquarters and manufacturing conglomerates. However, the country must prioritize cybersecurity to safeguard its infrastructure, digital networks, and citizens’ personal information.

The government must focus on protecting critical infrastructure, digital networks, and educating its citizens about the importance of keeping devices safe and recognizing online risks. By doing so, Panama can ensure a secure and sustainable economic future.